• In May 2024, DEKRA established the first Wi-Fi Alliance Authorized Test Laboratory (ATL) in Stuttgart, Germany. This lab focuses on automotive products and supports Wi-Fi CERTIFIED testing to ensure high-quality standards and industry compliance for automobile manufacturers and suppliers​.

• In October 2023, Jaguar Land Rover (JLR) opened a new electric vehicle (EV) test facility in Whitley, England. The facility is part of a strategic push to enhance their capabilities in developing and testing EVs. JLR is investing £15 billion to expand their EV lineup, which includes the launch of nine luxury electric vehicles by 2030.

In this report, the Automotive TIC Market has been segmented by Vehicle Type, Sourcing, Service Type, Application, and Geography.

Automotive TIC Market, Segmentation by Vehicle Type

The Automotive TIC Market has been segmented by Vehicle Type into Passenger Cars and Commercial Vehicles.

Passenger Cars

The Passenger Cars segment holds a significant share in the Automotive TIC market due to the rising production volumes and stricter compliance norms. Increasing demand for vehicle safety and emissions testing is driving TIC service adoption among car manufacturers. Nearly 65% of TIC services in the automotive sector are attributed to passenger vehicles, driven by high-volume sales and frequent product innovations.

Commercial Vehicles

The Commercial Vehicles segment is witnessing strong growth due to expanding logistics, construction, and public transportation sectors. Regulatory mandates for roadworthiness, fuel efficiency, and environmental compliance have amplified the need for comprehensive TIC services. This segment contributes over 35% to the market, with steady growth expected from developing economies focusing on infrastructure development and fleet modernization.

Automotive TIC Market, Segmentation by Sourcing

The Automotive TIC Market has been segmented by Sourcing into In-house and Outsourced

In-house

The In-house segment accounts for a notable portion of the Automotive TIC market, with manufacturers preferring internal teams for better quality control and data security. This model is favored by large OEMs aiming for process standardization and cost efficiency. Approximately 55% of TIC activities in established markets are handled in-house due to better integration with core operations.

Outsourced

The Outsourced segment is rapidly gaining momentum, especially among small and medium-sized automotive firms seeking cost-effective and specialized TIC services. The growing complexity of regulatory compliance and the need for global certification standards have driven companies to partner with third-party providers. Outsourced TIC services contribute to nearly 45% of the market, showing strong growth potential.

Automotive TIC Market, Segmentation by Service Type

The Automotive TIC Market has been segmented by ServiceType into Testing, Inspection and Certification.

Testing

The Testing segment dominates the Automotive TIC market as manufacturers aim to ensure product safety, durability, and compliance with evolving regulatory standards. This segment accounts for nearly 50% of the market due to its critical role in validating vehicle performance and quality assurance before mass production.

Inspection

The Inspection segment plays a vital role in identifying defects, design flaws, and production inconsistencies during various stages of the manufacturing process. With stringent global standards in place, this segment contributes over 30% to the market, ensuring vehicles meet quality and safety benchmarks throughout the supply chain.

Certification

The Certification segment is essential for verifying that automotive components and systems adhere to international standards and legal regulations. It represents around 20% of the TIC market, driven by the increasing demand for cross-border trade and regulatory compliance in global automotive markets.

Automotive TIC Market, Segmentation by Application

The Automotive TIC Market has been segmented by Application into ADAS, OEM Testing, Durability Testing, Telematics, and Others

ADAS

The ADAS segment is rapidly expanding due to growing demand for advanced driver assistance systems that enhance safety and driving experience. As regulatory bodies push for mandatory implementation, TIC services for ADAS account for nearly 28% of the application segment, ensuring systems meet performance and safety criteria.

OEM Testing

OEM Testing plays a central role in validating new vehicle models before launch, covering aspects like functional performance, safety, and emissions. This segment holds over 25% of the market share, as original equipment manufacturers prioritize reliable TIC services to maintain brand reputation and regulatory compliance.

Durability Testing

The Durability Testing segment focuses on evaluating vehicle components under extreme conditions to ensure long-term reliability and wear resistance. It represents around 20% of the TIC market, driven by rising consumer expectations for quality assurance and performance validation.

Telematics

Telematics testing has grown with the integration of connected vehicle technologies and data-driven systems. As more cars rely on real-time data exchange for navigation and diagnostics, this segment makes up approximately 15% of the application market and is expected to grow with the shift toward smart mobility.

Others

The Others segment includes a range of emerging applications such as cybersecurity testing, infotainment validation, and software compliance. Although smaller in size, contributing about 12%, this segment is gaining traction with the rise of software-defined vehicles and digital transformation in the automotive industry.

Automotive TIC Market, Segmentation by Geography

In this report, the Automotive TIC Market has been segmented by Geography into five regions; North America, Europe, Asia Pacific, Middle East and Africa and Latin America.

Automotive TIC Market Share (%), by Geographical Region

North America

North America holds a significant share in the Automotive TIC market due to stringent automotive safety standards and a strong presence of major vehicle manufacturers. The region is known for early adoption of technologically advanced testing solutions, contributing notably to global TIC revenues.

Europe

Europe is a mature market driven by rigorous environmental and safety regulations, especially in countries like Germany and France. The demand for certification and inspection services is high, with a strong focus on sustainability and emissions compliance across the automotive sector.

Asia Pacific

Asia Pacific leads the global Automotive TIC market in terms of growth, fueled by rising automotive production volumes in countries such as China, India, and Japan. The region accounts for a major portion of outsourced TIC services, supported by expanding manufacturing bases and government initiatives.

Middle East and Africa

Middle East and Africa is gradually gaining momentum due to increasing vehicle imports and rising regulatory awareness. While still emerging, the region shows potential for TIC expansion with investments in infrastructure and automotive trade regulations.

Latin America

Latin America is witnessing steady growth in TIC demand, especially in countries like Brazil and Mexico. Key drivers include improving safety standards, growing automotive exports, and a rising need for compliance with international certification protocols.

This report provides an in depth analysis of various factors that impact the dynamics of Automotive TIC Market. These factors include; Market Drivers, Restraints and Opportunities Analysis.

Drivers, Restraints and Opportunity Analysis.

Drivers

• Stringent Regulatory Standards
• Rising Consumer Awareness and Demand for Quality

• Globalization of Automotive Supply Chains - The rapid globalization of automotive supply chains has significantly increased the demand for standardized and reliable testing, inspection, and certification services. As automobile manufacturers source components and assemble vehicles across multiple countries, ensuring product quality and regulatory compliance at every stage of production has become increasingly complex. This complexity has led companies to rely on TIC providers to verify that parts, systems, and final products meet international standards.

  With vehicle components being designed in one country, manufactured in another, and assembled in a third, TIC services help bridge the gap between cross-border technical specifications and local regulatory requirements. Automotive companies must adhere to a wide range of safety, environmental, and quality regulations across different jurisdictions. The need for consistency and traceability throughout the supply chain makes independent verification not just important, but essential.

  As global automakers strive for faster time-to-market and cost efficiencies, TIC services enable them to streamline operations and mitigate risks. Third-party inspections ensure that suppliers meet predefined criteria before parts are integrated into production, helping prevent costly recalls, production delays, and legal liabilities. This proactive quality assurance becomes even more critical when sourcing from developing markets where regulatory oversight may vary.

  As the automotive industry becomes more decentralized and interconnected, the role of TIC providers in ensuring product integrity, regulatory compliance, and operational consistency continues to grow. This makes globalization of the supply chain a major driver of sustained demand for automotive TIC services.

Restraints

• High Costs of Testing and Certification
• Complexity of Regulatory Compliance

• Lack of Harmonization and Standardization - One of the key restraints limiting the growth of the automotive TIC market is the lack of harmonization and standardization across international regulations. Different countries and regions often maintain unique testing protocols, certification criteria, and safety benchmarks, making it difficult for manufacturers to streamline their compliance processes. This fragmented regulatory landscape increases both the time and cost associated with product development and approval.

  For global automotive manufacturers, navigating these varying standards can be both challenging and resource-intensive. What qualifies as road-legal or environmentally compliant in one region may not be acceptable in another. As a result, companies must often conduct redundant testing procedures to satisfy multiple jurisdictions, even when products are technically similar.

  This lack of global alignment also impacts the efficiency of TIC providers, who must customize their services to meet specific country requirements. It complicates the delivery of uniform testing and certification processes and can cause inconsistencies in quality assurance, especially in regions with emerging or evolving regulatory frameworks.

  Without a more unified global approach to automotive standards, the industry will continue to face inefficiencies and compliance burdens. Although efforts toward mutual recognition agreements and cross-border regulatory cooperation are underway, the current lack of harmonization remains a significant restraint on the full potential of the automotive TIC market.

Opportunities

• Rising Adoption of Electric and Autonomous Vehicles
• Growing Emphasis on Cybersecurity and Connectivity

• Expansion of Emerging Markets - The growing automotive production and consumption in emerging markets presents a major opportunity for the expansion of TIC services. As countries like India, Brazil, Vietnam, and South Africa strengthen their automotive sectors, the need for standardized testing, inspection, and certification becomes increasingly important. Local governments are implementing stricter quality, safety, and emissions standards, making TIC providers essential to ensuring compliance for both domestic production and exports.

  Emerging economies often rely on international investments and partnerships to grow their manufacturing capacity. Global automakers setting up operations in these regions require localized yet globally-aligned TIC services to maintain brand reputation and meet international benchmarks. TIC providers that can offer scalable, flexible services tailored to regional needs are well-positioned to capture this growing demand.

  The expansion of middle-class consumer bases in these markets is leading to higher expectations for product quality and safety. Consumers increasingly value verified certifications when purchasing vehicles, especially in regions where counterfeit parts or substandard manufacturing practices have been prevalent. Certification becomes a trust-building tool that differentiates legitimate brands and ensures consumer confidence.

  With electric vehicles and connected car technologies slowly entering emerging markets, the need for specialized TIC services is set to rise. Infrastructure limitations and environmental variability in these regions require customized testing protocols and on-ground expertise. TIC providers that invest early in these capabilities will gain a competitive edge as market maturity improves.

  As governments prioritize industrial growth while tightening regulatory oversight, the TIC sector can support manufacturers in achieving quality assurance, regulatory readiness, and market scalability. The expansion of emerging markets thus offers a long-term growth avenue for the global automotive TIC industry.

Key players in Automotive TIC Market include -

• SGS S.A.
• Bureau Veritas S.A.
• Intertek Group Plc.
• Dekra SE
• TÜV SÜD
• TÜV Rheinland Ag Group
• DNV GL
• British Standards Institution (BSI)
• Norges Elektriske Materiellkontroll (NEMKO)
• Eurofins Scientific SE
• Applus+

In this report, the profile of each market player provides following information:

• Company Overview and Product Portfolio
• Market Share Analysis
• Key Developments
• Financial Overview
• Strategies
• Company SWOT Analysis